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Fourth progress report on inclusion of enhanced contractual provisions in international sovereign bond contracts
This paper provides an update on the inclusion of the enhanced clauses in international sovereign bonds, and suggests that regular periodic updates can now be discontinued. The results are very similar to those in the previous progress report (the 2017 paper). Section II reports on the inclusion of these provisions, finding that the vast majority of issuances include them, with only a few countries continuing to stand out against the market trend. The section also provides an update on the outstanding stock of international sovereign bonds, showing that the percentage of the outstanding stock with enhanced clauses is increasing, but a significant percentage of the stock still does not include these clauses and little action has been taken by sovereign issuers to increase the rate of turnover. Section III reports on the use of different bond structures. Section IV describes other developments and proposes that future updates be prepared as needed rather than periodically given that the inclusion of enhanced clauses has become the norm for international sovereign bond issuances.